Search results

1 – 10 of 117
Open Access
Article
Publication date: 24 August 2021

Matteo Podrecca, Guido Orzes, Marco Sartor and Guido Nassimbeni

This paper aims to offer a long-term systematic picture of the evolution of manufacturing offshoring (in terms of intensity, geography and drivers) highlighting the changes in the…

2396

Abstract

Purpose

This paper aims to offer a long-term systematic picture of the evolution of manufacturing offshoring (in terms of intensity, geography and drivers) highlighting the changes in the surrounding context and the resulting transitions points (“points in time”) that have shaped its development path.

Design/methodology/approach

Three statistical tools were adopted on a dataset of 644 cases. First, the authors resorted to multiple structural change tests to identify the transition points. Second, the authors explored offshoring geography by conducting a network analysis. Finally, the authors adopted gravity models to shed light on offshoring drivers.

Findings

Results highlight three offshoring phases: expansion (2002–2006), reconsideration (2007–2009) and rationalization (2010 onwards). During the first phase, characterized by economic growth, firms were mainly interested in economic savings; offshoring to low-cost countries was the prevailing location strategy. Subsequently, during the economic crisis, the number of cases declined and the main drivers became market-based factors together with the research for cost savings. Finally, in the third phase, when the economy was still stagnating and new manufacturing technologies appeared, the number of offshoring cases has further decreased, and technological- and market-based factors have become the main location drivers.

Originality/value

The study is the first to adopt a systematic, empirical and quantitative approach to analyze the evolution of the manufacturing offshoring considering both the phenomenon itself and the triggering changes in the surrounding context. In doing this, the authors also tested the importance of considering the point in time in offshoring strategies.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 9
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 14 December 2017

Malin Johansson and Jan Olhager

The purpose of this paper is to present recent empirical results concerning offshoring and backshoring of manufacturing from and to Sweden, to increase the understanding of…

8884

Abstract

Purpose

The purpose of this paper is to present recent empirical results concerning offshoring and backshoring of manufacturing from and to Sweden, to increase the understanding of manufacturing relocation in an international context. In particular, extent, geographies, type of production, drivers, and benefits of moving manufacturing in both directions are investigated.

Design/methodology/approach

The study is based on survey data from 373 manufacturing plants. The same set of questions is used for both offshoring and backshoring between 2010 and 2015, which allows similarities and differences in decision-making and results between the two relocation directions to be identified.

Findings

There are many significant differences between offshoring and backshoring projects. Labour cost is the dominating factor in offshoring, as driver and benefit, while backshoring is related to many drivers and benefits, such as quality, lead-time, flexibility, access to skills and knowledge, access to technology, and proximity to R&D. This is also reflected in the type of production that is relocated; labour-intensive production is offshored and complex production is backshored.

Research limitations/implications

Plants that have both offshored and backshored think and act differently than plants that have only offshored or backshored, which is why it is important to distinguish between these plant types in the context of manufacturing relocations.

Practical implications

The experience of Swedish manufacturing plants reported here can be used as a point of reference for internal manufacturing operations.

Originality/value

The survey design allows a unique comparison between offshoring and backshoring activity. Since Swedish firms in general have been quite active in rearranging their manufacturing footprint and have experience from movements in both directions, it is an appropriate geographical area to study in this context.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 4
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 7 April 2020

Fabio Cassia

Recently, many firms have reshored manufacturing activities back to their home countries to increase customer perceptions of product quality. However, there is no evidence that…

3164

Abstract

Purpose

Recently, many firms have reshored manufacturing activities back to their home countries to increase customer perceptions of product quality. However, there is no evidence that relocating production to the home country improves customer-perceived quality. This study intends to address this gap by assessing the variations between pre- and post-reshoring product quality, as perceived by domestic customers.

Design/methodology/approach

Data were collected through a questionnaire, which used the case of an Italian fashion brand that had reshored its manufacturing from Romania to Italy as the stimulus. Two analyses of the collected data (n = 399) were conducted, applying both 2 × 2 × 2 factorial design and partial least squares–structural equation modelling (PLS–SEM) multigroup analysis.

Findings

Reshoring increased the level of perceived product quality only for customers that both were aware of the firm's past offshoring decision and had high levels of affective ethnocentrism. For all other customers, no significant variations between pre- and post-reshoring product quality were observed.

Research limitations/implications

This study challenges previous findings, revealing that only a minor share of customers perceived products to be of higher quality after reshoring.

Practical implications

Increasing customer-perceived quality may not be a sufficient motivation to select the reshoring strategy. In addition, when announcing reshoring strategies, producers should appeal to customers' emotions and not use rational arguments about objective product quality.

Originality/value

This is the first study to assess variations between pre- and post-reshoring customer-perceived quality and to identify factors that explain such variations.

Details

The TQM Journal, vol. 32 no. 6
Type: Research Article
ISSN: 1754-2731

Keywords

Open Access
Article
Publication date: 2 January 2024

Ewald Aschauer and Reiner Quick

This study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.

1323

Abstract

Purpose

This study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.

Design/methodology/approach

In this qualitative study guided by the theoretical framework of institutional theory, the authors conducted 25 semi-structured interviews in seven European countries, including 16 interviews with audit partners from Big 4 firms, 6 with audit team members, 2 with interviewees from second-tier audit firms and 1 with a member of an oversight body.

Findings

The authors show that the central rationale for audit firms to implement SSCs is economic rather than external legitimacy. The authors find that SSC implementation has substantial effects on audit practices, particularly those related to standardisation, coordination and monitoring activities. The authors also highlight the potential impacts on audit quality.

Originality/value

By exploring the motivation for and effects of SSC implementation amongst audit firms, the authors offer insights into the best practices related to subsequent change processes and audit quality.

Details

Accounting, Auditing & Accountability Journal, vol. 37 no. 9
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 16 July 2021

Zehra Sayed and Henrik Agndal

This paper analyzes how information systems (IS) can serve as tools of neo-colonial control in offshore outsourcing of research and development work. It draws on critical work…

1868

Abstract

Purpose

This paper analyzes how information systems (IS) can serve as tools of neo-colonial control in offshore outsourcing of research and development work. It draws on critical work examining business and knowledge process outsourcing.

Design/methodology/approach

The paper reports an empirical study of how laboratory information management systems (LIMS) shape offshore outsourcing practices involving Western client firms and Indian contract research organizations (CROs) in the pharmaceutical industry. The study adopted a multi-actor perspective, involving interviews with representatives of Western clients, Indian CROs, system validation auditors, and software vendors. The analysis was iterative and interpretative, guided by postcolonial sensitivity to themes of power and control.

Findings

The study found that LIMS act as tools of neo-colonial control at three levels. As Western clients specify particular brands of LIMS, they create a hierarchy among local CROs and impact the development of the local LIMS industry. At inter-organizational level, LIMS shape relationships by allowing remote, real-time and retrospective surveillance of CROs’ work. At individual level, the ability of LIMS to support micro-modularizing of research leads to routinization of scientific discovery, negatively impacting scientists’ work satisfaction.

Originality/value

By examining multiple actors’ perceptions of IS, this paper looks beyond the rhetoric of system efficiency characteristic of most international business research. As it explores dynamics of power and control surrounding IS, it also questions the proposition that outsourcing of high-end work will move emerging economies upstream in the value chain.

Details

critical perspectives on international business, vol. 18 no. 3
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 25 March 2021

Per Hilletofth, Movin Sequeira and Wendy Tate

This paper investigates the suitability of fuzzy-logic-based support tools for initial screening of manufacturing reshoring decisions.

1524

Abstract

Purpose

This paper investigates the suitability of fuzzy-logic-based support tools for initial screening of manufacturing reshoring decisions.

Design/methodology/approach

Two fuzzy-logic-based support tools are developed together with experts from a Swedish manufacturing firm. The first uses a complete rule base and the second a reduced rule base. Sixteen inference settings are used in both of the support tools.

Findings

The findings show that fuzzy-logic-based support tools are suitable for initial screening of manufacturing reshoring decisions. The developed support tools are capable of suggesting whether a reshoring decision should be further evaluated or not, based on six primary competitiveness criteria. In contrast to existing literature this research shows that it does not matter whether a complete or reduced rule base is used when it comes to accuracy. The developed support tools perform similarly with no statistically significant differences. However, since the interpretability is much higher when a reduced rule base is used and it require fewer resources to develop, the second tool is more preferable for initial screening purposes.

Research limitations/implications

The developed support tools are implemented at a primary-criteria level and to make them more applicable, they should also include the sub-criteria level. The support tools should also be expanded to not only consider competitiveness criteria, but also other criteria related to availability of resources and strategic orientation of the firm. This requires further research with regard to multi-stage architecture and automatic generation of fuzzy rules in the manufacturing reshoring domain.

Practical implications

The support tools help managers to invest their scarce time on the most promising reshoring projects and to make timely and resilient decisions by taking a holistic perspective on competitiveness. Practitioners are advised to choose the type of support tool based on the available data.

Originality/value

There is a general lack of decision support tools in the manufacturing reshoring domain. This paper addresses the gap by developing fuzzy-logic-based support tools for initial screening of manufacturing reshoring decisions.

Details

Industrial Management & Data Systems, vol. 121 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 29 March 2024

Haihan Li, Per Hilletofth, David Eriksson and Wendy Tate

This study aims to investigate the manufacturing reshoring decision-making content from an Eclectic Paradigm perspective.

Abstract

Purpose

This study aims to investigate the manufacturing reshoring decision-making content from an Eclectic Paradigm perspective.

Design/methodology/approach

Data were collected through a six-step systematic literature review on factors influencing manufacturing reshoring decision-making. The review is based on 100 peer-reviewed journal papers discussing reshoring decision-making contents published from 2009 to 2022.

Findings

In total, 80 decision factors were extracted and then categorized into resource-seeking (8%), market-seeking (11%), efficiency-seeking (41%) and strategic asset-seeking (16%) advantages. Additionally, 24% of these were identified as hybrid, which means that they were classified into multiple categories. Some decision factors were further identified as reshoring influencing factors (i.e. drivers, enablers and barriers).

Research limitations/implications

Scholars need to consider what other theories can be used or developed to identify and evaluate the decision factors (determinants) of manufacturing reshoring as well as how currently adopted theory can be further advanced to create clearer and comprehensive theoretical frameworks.

Practical implications

This research underscores the importance of developing clearer and more comprehensive theoretical frameworks. For practitioners, understanding the multifaceted nature of decision factors could enhance strategic decision-making regarding reshoring initiatives.

Originality/value

To the best of the authors’ knowledge, this is the first study to investigate the value and practicality of the Eclectic Paradigm in categorizing factors in manufacturing reshoring decision-making content and presents in-depth theoretical classifications. In addition, it bridges the gap between decision factors and influencing factors in the decision-making content research realm.

Details

European Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0955-534X

Keywords

Open Access
Article
Publication date: 4 September 2020

Laura Macchion and Rosanna Fornasiero

Supply chain (SC) configuration has gained increased acceptance as an important issue when evaluating new customization possibilities and this evidence has contributed to the…

3889

Abstract

Purpose

Supply chain (SC) configuration has gained increased acceptance as an important issue when evaluating new customization possibilities and this evidence has contributed to the strengthening of the debate between global vs local production locations. This work contributes in enrichment of this topic by studying how local or global SC location decisions influence performances by considering a SC point of view, in terms of cost and time, in traditional and customized productions.

Design/methodology/approach

A discrete event simulation approach, based on experimentation through executable configurations, was used to evaluate different SC scenarios for customized as well as traditional products within the footwear industry.

Findings

The results indicated that to identify proper SC locations, existing trade-offs between the time and cost performances should be studied, avoiding the evaluation of a single performance independently and, instead, adopting a complete SC point of view while considering these performances.

Research limitations/implications

This evidence has contributed to the reinforcement of the discussion between far-shore destinations vs near-shore production locations. Further studies are encouraged to adopt the present model, in which addition of other variables such as specific manufacturing competences to differentiate suppliers, both local and global suppliers, or the possibility of realizing special types of product customization required by final consumers can be done.

Practical implications

The paper contributes to the academic and practitioners' debate by proposing a systemic approach to assess SCs’ performances in customized contexts and to compare them to traditional collections. Results indicate that cost and time performance must find a balance that does not necessarily correspond to an exclusively local or global production.

Originality/value

This work contributes to the SC configuration issue by considering the trade-off between efficiency and effectiveness (i.e. SC costs and SC times) for customized productions by reviving and enriching it with an SC perspective in customization contexts.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 25 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

Open Access
Article
Publication date: 3 April 2017

ChangSeob Yeo and Vafa Saboori-Deilami

The purpose of this study is to theoretically clarify under which circumstances MNCs should outsource the innovation function. In the globalization era, multinational companies…

8765

Abstract

Purpose

The purpose of this study is to theoretically clarify under which circumstances MNCs should outsource the innovation function. In the globalization era, multinational companies (MNCs) face the challenge of making a strategic decision. They ought to adjudicate upon outsourcing the research and development, i.e. innovation function and bearing the risks of it, or keeping innovation function in house and paying the price of this decision. This decision becomes more crucial when the host country has dissimilar characteristic and high uncertainty compared to the home country.

Design/methodology/approach

This study is among the very first studies that evaluate the issue of outsourcing innovation for MNCs from a transaction cost economics (TCE) theoretical perspective. By setting forward propositions that serve as a guideline for conditions in which MNCs should outsource innovation, this paper contributes to innovation, new product development, global business and, last but not least, to the TCE literature. This study also provides managerial implications and avenues of future research for academicians.

Findings

This study shows that heterogeneity between the home and host country affects the autonomy of the innovation at the host country; this autonomy in turn leads to higher transaction cost, and finally, transaction cost is the main determinant of the decision on whether to outsource the innovation.

Originality/value

This study fills this gap by looking at the problem of outsourcing innovation from a TCE theoretical perspective and, based on an extensive literature review, puts forward a set of propositions that clarify under which circumstances MNCs should outsource the innovation function.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 11 no. 1
Type: Research Article
ISSN: 2071-1395

Keywords

Open Access
Article
Publication date: 26 August 2020

Gyöngyi Kovács, Markku Kuula, Stefan Seuring and Constantin Blome

The purpose of this article is to discuss the role of operations management in society. The article detects trends, raises critical questions to operations management research and…

3297

Abstract

Purpose

The purpose of this article is to discuss the role of operations management in society. The article detects trends, raises critical questions to operations management research and articulates a research agenda to increase the value of such research in addressing societal problems.

Design/methodology/approach

This paper evaluates the papers presented at the EurOMA 2019 conference to detect trends and discuss the contributions of operations management research to society. It further goes to identify gaps in the research agenda.

Findings

The article finds several important streams of research in operations management: sustainable operations and supply chains, health care and humanitarian operations, innovation, digitalisation and 4.0, risk and resilience. It highlights new trends such as circular economy research and problematises when to stop implementing innovation and how to address and report their potential failure. Importantly, it shows how it is not just a question of offshoring vs reshoring but of constant change in manufacturing that operations management addresses.

Originality/value

The article highlights not just novel research areas but also gaps in the research agenda where operations management seeks to add value to society.

Details

International Journal of Operations & Production Management, vol. 40 no. 9
Type: Research Article
ISSN: 0144-3577

1 – 10 of 117